KEVYN ORR'S FORMER FIRM WORKING TO HELP TURN AROUND THE CITY. YES, THE CITY OF DETROIT HAS A BANKRUPTCY RESTRUCTURING LAW FIRM TONIGHT, EVEN THOUGH ITS CONTRACT IS NOT APPROVED. Devin: THOSE DETAILS CAME OUT OF A CITY COUNCIL MEETING THAT BROUGHT SURPRISES. BUSINESS EDITOR ROD MELONI IS WITH US. NOT QUITE HOW THE LAWYERS DRAW IT UP. Rod: NO, IT'S NOT. AND THE CITY COUNCIL'S MAIN JOB IS TO LOOK AT CONTRACTS AND GIVE THEM THE THUMBS-UP OR DOWN. BUT THERE'S THE FLIP SIDE. IT'S BUREAUCRATIC, AND A LOT OF VENDORS GO TO WORK BEFORE THE CONTRACT GETS APPROVED, AND THAT'S WHAT'S HAPPENED HERE WITH JONES DAY, THE RESTRUCTURING FIRM THAT ALSO USED TO EMPLOY ONE KEVYN ORR, THE EMERGENCY FINANCIAL MANAGER FOR THE CITY OF DETROIT. IT WAS BACK IN JANUARY THAT JONES DAY SENT A SIX-MEMBER LAW TEAM THAT INCLUDED KEVYN ORR TO DETROIT TO BECOME THE CITY'S TURNAROUND COUNSEL THERE. FOR THE PITCH WAS THE OWNER WHO IMPRESSED THAT HE BACKED THE MAYOR'S DECISION TO BACK JONES DAY. IN A POSITION TO EVALUATE WHETHER WE CAN RESTRUCTURE WITHOUT THE NEED OF GOING INTO CHAPTER 9 OR THE DEBT REORGANIZATION PROCESS OR NOT. AND THAT MAY SOUND LIKE A SIMPLE QUESTION, BUT IT'S A VERY COMPLICATED WORK-UP. Rod: THE GOVERNOR'S OFFICE HAD A LIGHT BULB MOMENT, THAT KEVYN ORR WOULD MAKE AN IMPRESSIVE EMERGENCY MANAGER AND THE WHEELS STARTED MOVING IMMEDIATELY AND KEVYN ORR IMMEDIATELY RESIGNED AND LEFT THE FIRM ALTOGETHER. THE PROCESS BY WHICH JONES DAY WAS SELECTED FOR THIS POSITION OPERATED INDEPENDENTLY OF THE PROCESS BY WHICH MR. ORR WAS SELECTED TO BE EM. AND I WAS PART OF THE PROCESS WHERE JONES DAY WAS SELECTED, -- Rod: KEN COCKREL HAD ANOTHER CONCERN, JONES DAY IS ALREADY ON THE JOB. ARE WE TO ASSUME THAT THE WORK THEY HAVE DONE THIS FAR IS GOING TO BE PRO BONO? NO. SO THEY'LL BE BILLING FOR THAT? Rod: AND ANOTHER QUESTION: KEVYN ORR WAS A PARTNER IN JONES DAY. BUT BASS HE WAS THERE FOR TWO MONTHS, HE WOULD QUALIFY FOR A PARTNERSHIP SHARE IN THE PROFITS AT THE END OF THE YEAR. SO WILL HE PROFIT AS A RESULT OF THE CITY OF DETROIT'S BUSINESS? AND THAT MAY HAVE AN IMPACT WHEN IT COMES UP FOR A VOTE PROBABLY NEXT WEEK. Devin: AND HANGING OVER EVERY GATHERING OF THE COUNCIL IS THE QUESTION OF WHAT THEIR ROLE WILL BE UNDER KEVYN ORR. WHAT DOES THAT STAND? Rod: THEY'RE OPERATING UNDER THE SAME RULES THAT THE CONTRACT IS, IN THAT THEY'RE GONNA PROCEED AS IF NOTHING HAS CHANGED. KEVYN ORR IS SUPPOSED TO BE COME OUT WITH AN ORDER. THEY'RE STILL WORKING ON THE LEGAL INTRICACIES OF IT.

DETROIT -

In January, the Jones Day law firm sent a six-member team -- which included Kevyn Orr -- to Detroit to try to become the financially-burdened city's turnaround counsel.

City attorney Edward Keelan was there for the pitch. He was so impressed with Jones Day that he backed Mayor Dave Bing's decision to pick the law firm.

"(Jones Day is) in a position to evaluate whether we can restructure without the need of going into Chapter 9 or the debt reorganization process, or not. That may sound like a simple question but it's very complicated," said Keelan.

However, it was at that January meeting when the Michigan governor's office had a light-bulb moment: Orr, a University of Michigan graduate and experienced bankruptcy attorney, would make for an impressive emergency manager for Detroit.

The wheels started turning almost immediately. Orr quickly resigned from the Jones Day pitch team in Detroit, and then left the firm all together.

"The process by which Jones Day was selected for this position operated independently of the process by which Mr. Orr got selected to be EM, and I was part of the process whereby Jones Day got selected. I can vouch for the method by which they got selected," said Keelan.

The Detroit City Council still has questions on whether Orr's affiliation with Jones Day and the firm's affiliation with the city have created a conflict of interest. Councilman Ken Cockrel Jr. has another concern: Jones Day already is on the turnaround job.

"Are we to assume that that work since this contract hasn't been approved yet? That the work that they have done thus far is going to be pro bono, so they're going to be billing for that?" said Cockrel.

The Jones Day contract is set for six months at just less than $3 million. One of the other questions is whether Orr, who was a partner at Jones Day for a couple of months in 2013, would make money as a partner with Jones Day.

Keelan said it's likely he will get a pro-rated share of Jones day profits.

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